The Best Book to understand Bitcoin for Beginners!!

The Best Book to understand Bitcoin for Beginners!!

Bitcoin (BTC) (from the English bit: binary information unit and coin corner) is a cryptocurrency otherwise called cryptographic currency. In the case of the unit denomination, it is written "bitcoin" and, in the case of the peer-to-peer payment system it is written "Bitcoin". The idea was first presented in November 2008 by one person, or a group of people, under the pseudonym Satoshi Nakamoto. The source code of the reference implementation was published in 2009.

The G20 considers Bitcoin to be a "crypto-asset" that does not fulfill the role of a currency. The term “crypto-active” then refers to “virtual assets stored on an electronic medium allowing a community of users accepting them in payment to carry out transactions without having to resort to legal tender”.

I) How Bitcoin works?

To create and manage bitcoins, Bitcoin relies on software. In this software, bitcoins are created in accordance with a protocol which compensates the agents who processed transactions. These agents use their computing power to verify, secure and record transactions in a virtual note register, called blockchain, in French blockchain, a name which comes from the fact that the base entity of Bitcoin is called a block, and the blocks are then linked into a chain, the chain of blocks.

For each new block accepted, the verification-security-recording activity, called mining, is remunerated by newly created bitcoins and by the costs of the transactions processed. As a currency or commodity, bitcoins can be exchanged for other currencies or commodities, goods or services. The exchange rate of the cryptocurrency is fixed mainly on specialized market places and fluctuates according to the law of supply and demand.

It is possible to buy bitcoins online on specialized platforms. These platforms also make it possible to follow in real time the evolution of the price of bitcoin compared to other currencies or cryptocurrencies.

II) Use?


Since its creation in 2009 and until the closing by the American authorities of Silk Road in 2013, bitcoin has been used mainly as a means of exchange by criminal networks for gambling, the purchase of illicit substances, or for hacked databases. The cryptocurrency has attracted the attention of financial authorities, legislative bodies from various countries, especially the United States, and the media.

However, in recent years, cryptocurrency has matured and an increasing number of studies conclude that these illegal activities, although they still exist as in any payment system, represent only a minority share of cryptocurrency exchanges. The Senate of the United States also recognizes that bitcoin makes it possible to provide perfectly legitimate financial services.
Five reasons to stay away from bitcoin!!

III) Five reasons to stay away from bitcoin:

  1. Unprecedented volatility: For sellers and buyers alike, it is a question of speculating with each transaction, whether it is an iPhone, a car or a coffee. Unthinkable risk taking for companies whose profitability depends on margins of the order of a few percent.
  2. Excessive transaction costs: To protect themselves against these increases and decreases, all players could have to cover themselves, which is equivalent to taking out insurance against volatility. This will soon be possible thanks to the appearance of new financial tools. But this represents an additional cost which will necessarily be passed on to the end user.
  3. An energy sinkhole: By accumulating IT resources, miners consume electricity. Lots of electricity. In early November, when bitcoin reached $ 7,000, mining became profitable up to a consumption of 24 terawatt hours. A quantity of energy which can light the 186 million inhabitants of Nigeria for a year.
  4. Imperfect security: Anonymity and secure transactions are part of the foundations of bitcoin. Without a centralized body to control cryptocurrency management institutions, users must essentially rely on word of mouth. While transaction hacking is unlikely, virtual wallets are not foolproof.
  5. Difficult generalization: In the spotlight, bitcoin could be dethroned by competitors, starting with Ethereum. According to the latest report published by the specialized site CoinDesk, bitcoin represented less than 50% of the cryptocurrencies in circulation in September, against 90% at the beginning of 2017. The figure has probably evolved since the outbreak the price of bitcoin, but shows, however, that the tendency of long-term investors is mistrustful.

⇛⇛⇛Understanding Bitcoin !!⇚⇚⇚

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